Will GM Stock be Helped by Dismissal of Shareholder Lawsuit?

General Motors (GM) won a court case dismissing shareholders claims that it was liable for losses associated with last year's ignition switch recall.

NEW YORK (TheStreet) -- General Motors (GM) shares are down 0.36% to $33.11 in afternoon trading on Tuesday despite a Delaware judge dismissing a shareholder lawsuit against the company.

The lawsuit accused the company's board of directors of not doing enough to prevent the financial fallout from the ignition switch recall that the company was embroiled in last year.

The company is still the subject of investigations and lawsuits tied to the ignition switch problem which resulted in 119 confirmed deaths and 234 injuries.

"The Delaware Court properly dismissed the complaint because GM's board of directors did its job in exercising oversight over the company," GM said in a statement, according to USA Today. ""The other shareholder derivative actions pending against the board make the same allegations, so we hope the courts will dismiss those as well."

The company still has three similar shareholder lawsuits pending in Michigan.

Insight from TheStreet research team

GM is a core holding of Jim Cramer's Action Alerts PLUS charitable trust and was recently the subject of a 'Weekly Roundup' blog post by Cramer and co-manager Jack Mohr. Here is what they had to say about GM:

The shares took a hit this week following a convincing downgrade from analysts at Goldman Sachs. Beyond this piece of negative news, industry analysts indicated this week that GM volumes should be up 7% in the first half of the year. With respect to market share, GM appears in line with its six-month trailing average of 18%. We are neutral on this name and although we like the cash optionality we would be remiss not to acknowledge how damaged the company's Latin American business has become.